Phillipsburg Town Council expands short-term tax breaks in bid to be 'business friendly'

Downtown Phillipsburg restaurateur Mack Sullivan asked town officials late last year for a tax break as he planned to relocate his South Main Street restaurant to another building, which was in dire need of repairs.

Following Sullivan’s plea, town council last week unanimously approved offering property owners short-term tax breaks when they make costly improvements to their buildings. With council approval, property owners don’t have to pay taxes on the renovations for five years after the work is complete.

Council President Todd Tersigni called the measure “business-friendly.”

“This will encourage business owners to expand their businesses,” Tersigni said. “It’s an incentive to revitalize their property.”

Renovations must cost at least 20 percent of the taxable value of the property as certified by a licensed contractor or architect, according to the measure. Without the change approved March 3 by council, the town’s short-term tax breaks benefited only new construction and large additions for commercial and industrial properties, town attorney Richard Wenner said.

Prior to 2006, the town had the same law on the books as the one passed last week, Wenner said. He and Mayor Harry Wyant Jr. said they didn’t know why officials repealed the law. Sullivan’s request was the impetus for the most recent measure, Wenner said.

“It’s just one more tool the town is trying to avail itself of to improve the overall economic makeup of the town,” Wenner said.

Sullivan, who owns the South Stockton Station Family Restaurant, can apply for the tax relief once the law takes effect, Wenner said. Sullivan previously told council he’s moving his restaurant from 435 S. Main St. to 371 S. Main St. The larger, potentially busier location has its shortcomings, however; broken pipes and a leaky roof plagued the restaurant’s future home, Sullivan had said.

Sullivan did not immediately return phone calls for comment Monday. He came to council seeking tax relief after he learned of the 30-year payment in lieu of taxes officials were considering for developer Michael Perrucci’s stalled Riverview at Delaware Station housing project. Council approved Perrucci’s long-term incentive last month.

Wyant said the Howard Street property eyed for Perrucci’s development and improvements along South Main Street would eventually result in more revenue for the town. If no one takes action, the properties will remain stagnant, Wyant said. Then there will be no increased revenue. But that’s not the only consideration, Wyant said.

“There’s other ancillary benefits to having more people downtown to shop and visit the restaurants and stores,” Wyant said.